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    Kconroy's Avatar
    Kconroy Posts: 1, Reputation: 1
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    #1

    Jan 4, 2010, 04:39 PM
    What is the state tax % for 401k withdrawl in virginia?
    When taking a early withdrawl off a 401k plan, what is the % of state tax that needs to be withdrawn? If my 401k total is 10k, federal is 20%, and there a early penalty for 10%, but what is the state %?
    When I file my taxs the same year, does the early withdrawl % come out of my tax return?
    ScottGem's Avatar
    ScottGem Posts: 64,966, Reputation: 6056
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    #2

    Jan 4, 2010, 06:28 PM

    The distribution is added to your taxable income and taxed as regular income. The 20% federal withholding is just that, withholding. Its applied against your tax liability to determine how much you owe or will get back from the Feds.

    The 10% penalty will be paid with your return.
    ebaines's Avatar
    ebaines Posts: 12,131, Reputation: 1307
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    #3

    Jan 5, 2010, 09:22 AM

    I believe the marginal income tax rate in VA is 5.75% for incomes above $17K, so that's most likely the percentage you would pay. This amount is NOT withheld from your withdrawal - you have to figure the amount and pay it with your state tax return in April. Also, the 10% early withdrawal penalty is typically not withheld either - you pay that with your federal tax return.
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